COVID-19, Brexit & Company Restructuring

Licensed Insolvency Practice | Competitive | National 

COVID-19, Brexit & Company Restructuring

As business owners and company directors, we are always looking forward and taking pro-active measures to benefit our businesses.COVID-19, Brexit & Company Restructuring

So it is not difficult to foresee that in the new year, as the UK Government gradually weans businesses off COVID-19 life support and as the impact of Brexit takes effect, many a successful business will experience financial distress. 

However, with continued forethought and action, businesses can prevent a challenging situation from developing into a critical one.  So if a recent cash flow or trading forecast for the coming months makes for grim reading, now is the time to take a moment and consider company restructuring.

“A company restructure isn’t just about today.  It’s a chance to take stock, to change and reposition.  It can be about tomorrow’s business being a more robust one” 

Restructuring a business may involve a reduction or removal of the burden of debt. For some business owners and directors wishing to trade out of difficulties, a Company Voluntary Arrangement (CVA) is a potential solution.  Whilst for others, a company restart or a pre-pack Administration may be more suitable.

It is even possible for a restructure to clear some or all of company debt, by providing creditors with equity in the business moving forward.

Owing creditors such as suppliers, landlords and lenders, is in itself a risky business. In the first instance talk to them and try to ‘head them off at the pass’. Creditors can take legal action affecting your credit ratings and even wind up your company, if they have reason to believe this is their best option.

If you think you may need to restructure your company in the near future, it is never too early to take advice and this may increase the options available. 

Conceivable restructuring solutions may blend: operational restructuring, financial restructuring and company insolvency procedures – with the mix being very much dependent upon the company’s recent performance, its liquidity position, the business plan, the funding structure and future potential value.

We have a company restructuring team who are turnaround experts, ready to walk you through the process of restructuring and the mitigation of risk as a director. Call the team today to book a free, no obligation consultation with one of our restructuring specialists: 0121 201 1720.